§ 53-163.5. Establishment of common trust funds.
Part 2. Uniform Common Trust FundAct.
§ 53‑163.5. Establishment of common trust funds.
(a) Any bank or trustcompany duly authorized to act as a fiduciary in this State may establish andmaintain one or more common trust funds for the collective investment of fundsheld in a fiduciary capacity by such bank or trust company hereafter referredto as the "maintaining bank". The maintaining bank may include forthe purposes of collective investment in such common trust fund or fundsestablished and maintained by it, funds held in a fiduciary capacity by anyother bank or trust company duly authorized to act as a fiduciary, whereverlocated, which other bank or trust company is hereinafter referred to as the"participating bank".
Provided, however, that therelationship between the maintaining bank and the participating bank is (i) themaintaining bank owns, controls or is affiliated with the participating bank or(ii) a bank holding company owns, controls or is affiliated with both themaintaining bank and the participating bank.
(b) For the purposes ofthis section, a bank or trust company shall be considered to be owned,controlled or affiliated if twenty‑five percent (25%) or more of anyclass of its voting stock is owned by a bank or bank holding company or iftwenty‑five percent (25%) or more of any class of its voting stock isowned by one person or no more than 10 persons who are the same person orpersons who own twenty‑five percent (25%) or more of any class of thevoting stock of the maintaining bank.
(c) Such common trustfunds may include a fund composed solely of funds held under an agencyagreement in which the bank or trust company assumes investment discretion andassumes fiduciary responsibility.
(d) Such bank or trustcompany may invest the funds held by it in any fiduciary capacity in one ormore common trust funds, provided that (i) such investment is not prohibited bythe instrument, judgment, decree or order creating such fiduciary relationshipor amendment thereof, and (ii) the bank has no interest in the assets of thecommon trust fund other than as a fiduciary. (1939, c. 200, s. 1; 1973, c. 1276; 1977, c. 502, s.2; 2005‑192, s. 1; 2006‑259, s. 13(q).)